Harehills leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Harehills enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Harehills you would be well advised to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Harehills with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Harehills lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Twenty four months ago Alexander, started to get close to the 80-year mark with the lease on his purpose- built flat in Harehills. Having bought his flat two decades ago, the unexpired term was of minimal interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Alexander extended the lease at the eleventh hour last May. Alexander and the freeholder in the end settled on the final figure of £6,000 . If he not met the deadline, the amount would have increased by at least £1,075.
In 2013 we were e-mailed by Mr and Mrs. D Bonnet who, having owned a first floor flat in Harehills in March 2012. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Harehills with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2097. Given that there were 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Spring we were called by Mr and Mrs. J André , who took over the lease of a one bedroom apartment in Harehills in March 2008. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative flats in Harehills with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed annually. The lease lapsed on 7 November 2077. Having 51 years left we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including costs.